I I · 2019-10-13 · Camlin Fine Sciences Ltd. F/ 11-12, WICEL, Opp. SEEPZ, Central Road,Andheri...

5th August, 2019

To, BSE Limited,

25, P. J. Towers, Dalal Street, Mumbai - 400 001 Ref: Company Scrip Code: 532834

To, The Manager, Listing Department, National Stock Exchange of India Ltd ., Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai- 400051 Ref: Symbol: CAMLINFINE I I Series: EQ

Sub: Intimation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - ("SEBI LODR")

This is in continuation to our disclosure dated August 2, 2019 in relation to the conference call with various domestic and international investors and analysts to discuss the financial results of the Company for the quarter ended June 30, 2019 (Ql) on August 5, 2019, please find enclosed herewith the investor presentation made for the aforesaid call .

It is clarified that the presentation and the information contained therein does not constitute or form part of an invitation or solicitation to offer to purchase or subscribe to any securities of the Company in any jurisdiction. This presentation has been prepared for information purposes only. The information contained in the investor presentation is not to be taken as any recommendation made by the Company or any other person to enter into any agreement with regard to any investment.

We request you to take the above on record and the same be treated as compliance under the applicable Regulations of SEBI LODR.

Thanking You, Encl. : a/a. For Camlin Fine Sciences Limited

(Santosh Parab) Chief Financial Officer

Registered Office: Camlin Fine Sciences Ltd. F/ 11-12, WICEL, Opp. SEEPZ, Central Road,Andheri East, Mumbai 400093, India. CIN: L74 I OOMH I 993PLC07536 I

+91 22 6700 I 000 +91 22 2832 4404 [email protected] www.camlinfs.com

EARNINGSPRESENTATIONQ1-FY20

2

Company Overview

Application Labs in India, Brazil, North America,

Italy and Mexico

2Executive Summary

Operational Revenue

8,922

EBITDA

693*

Net Worth

4,303#

Financials FY19 Consolidated (INR Mn)

* Excluding Other Income &ForeignExchange Fluctuation Gain/ (Loss)

• Camlin Fine Sciences Limited (CFS), formed in 2006 after demerging thefine chemical business from Camlin Ltd., is a vertically integrated companyengaged in research, development, manufacturing, commercializing andmarketing of specialty chemicals and blends, which are used in a widearray of sectors.

• CFS is global leading producer of food antioxidants, such as TBHQ & BHA,and the world’s 3rd largest producer of Vanillin.

• Shelf Life Solutions (54%) : Includes Anti-oxidants, Blends and Additives• Performance Chemicals (27%): Includes Specialty Chemicals• Aroma Chemicals (17%): Includes Vanillin and Ethyl Vanillin

Manufacturing Facilities in India, Brazil, China,

Mexico and Italy

R&D Centres at Tarapur(India) and

Ravenna (Italy)

Manufacturing Facilities, R&D Centres and Application Labs

FY19 Business Mix (Revenue Share %)

#Including non controlling interest

3 Snapshot

One of the few vertically and backward integrated players

Leading Manufacturers of Antioxidants in the world with more than 30 years of experience

3rd largest producer of Vanillin in the world

Serving more than 80 countries with over 100 products

Preferred Partner for manufacturing customized products

Strategic move to start blends which have higher margins

5 Manufacturing Facilities, 2 R&D Centres and 5 Application Labs

Global expertise, local solutionsStrong management team with experienced industry professionals

4 About the Company

Total Operational Revenue (INR Mn)

Q1-FY20 Operational Revenue Breakup

• In 2006, Camlin Fine Sciences Limited (CFS) was formed after de-merging (mirrorshareholding) the fine chemical business from Camlin Ltd.

• The Company has over 30 years of experience providing innovative solutions with acompetitive advantage in fine sciences.

• CFS is a vertically integrated company, engaged in research, development,manufacturing, commercializing and marketing of specialty chemicals and blends,which are used in a wide array of sectors.

• CFS categorizes their business into 3 different verticals based on their product portfolio,namely: Shelf-Life Solutions (which include anti-oxidants, its blends and additives),Performance chemicals and Aroma Chemicals.

• CFS has subsidiaries in Mexico, North America, China, Europe and Brazil serving in morethan 80 countries with more than 100 products and over 1,000 satisfied customers.

• CFS markets its products in Europe, Asia Pacific (including India), North Africa, MiddleEast, South, Central and North America.

5,042 5,469

7,228

8,922

2,601

-

2,000

4,000

6,000

8,000

10,000

FY16 FY17 FY18 FY19 Q1-FY20

Performance Chemicals

29%

Blends 29%

Shelf-life Extension

21%

Aroma20%

Others, 1%

o Food, feed, animal and pet nutrition

o Flavours & Fragrance

o Pharma

o Agro Chemicals

o Petro chemicals

o Dyes and Pigments

o Polymers

o Bio Diesel

Q1-FY20 FINANCIAL OVERVIEW

5

6 Q1-FY20 Financial & Operational Highlights

* EBITDA after adjusting Foreign Exchange Fluctuation Gain/ (Loss)

Q1-FY20 Financial Highlights (Standalone) :

• Turnover: INR 1,436 Mn

• EBITDA: INR 97 Mn

• EBITDA Margin : 6.75%

• Adjusted EBITDA*: INR 105 Mn

• PBT: INR 24 Mn

• PAT: INR 16 Mn

• PAT Margins: 1.11%

Q1-FY20 Operational Highlights :

• There has been an improvement in revenues on a Y-o-Y basis due to strong growth in volumes, optimum utilization levels, new product-mix

and better operational efficiencies.

• Healthy growth and sequentially stable realizations seen across all the three business segments i.e. Shelf Life Solutions, Performance

Chemicals and Aroma Chemicals.

Q1-FY20 Financial Highlights (Consolidated) :

• Turnover: INR 2,601 Mn

• EBITDA: INR 355 Mn

• EBITDA Margin: 13.65%

• Adjusted EBITDA*: INR 358 Mn

• PBT: INR 227 Mn

• PAT: INR 164 Mn

• PAT Margins: 6.31%

7 Q1-FY20 Standalone Income Statement (Ind-AS)Income Statement (Mn) Q1-FY20 Q1-FY19 Y-o-Y Q4-FY19 Q-o-Q

Operational Revenue 1,436 1,079 33.1% 1,715 (16.3)%

Total Expenses 1,339** 997 34.3% 1,629 (17.8)%

Operational EBITDA 97 82 18.3% 86 12.8%

Operational EBITDA Margins (%) 6.75% 7.60% (85) Bps 5.01% 174 Bps

Adjusted EBITDA* 105 82 28.0% 123 (14.6)%

Adjusted EBITDA Margins(%) 7.31% 7.60% (29) Bps 7.17% 14 Bps

Other Income 10 91 (89.0)% 18 (44.4)%

Depreciation 28 23 21.7% 22 27.3%

Finance Cost 55 63 (12.7)% 52 5.8%

PBT 24 87 (72.4)% 30 (20.0)%

Tax 8 34 (76.5)% 3 NA

Profit After tax 16 53 (69.8)% 27 (40.7)%

PAT Margins (%) 1.11% 4.91% (380) Bps 1.57% 46 Bps

Other Comprehensive Income (1) - NA 1 NA

Total Comprehensive Income 15 53 (71.6)% 28 (46.4)%

Diluted EPS (INR) 0.13 0.44 (70.5)% 0.22 (40.9)%

* EBITDA after adjusting Foreign Exchange Fluctuation Gain/ (Loss)**Includes provision on impairment of investment and Loan to SolentusCanada INR 31.41 Mn

8 Q1-FY20 Consolidated Income Statement (Ind-AS)

* EBITDA after adjusting Foreign Exchange Fluctuation Gain/ (Loss)

Income Statement (INR Mn) Q1-FY20 Q1-FY19 Y-o-Y Q4-FY19 Q-o-Q

Operational Revenue 2,601 1,814 43.4% 2,680 (2.9)%

Total Expenses 2,246 1,675 34.1% 2,512 (10.6)%

Operational EBITDA 355 139 155.4% 168 111.3%

Operational EBITDA Margins (%) 13.65% 7.66% 599 Bps 6.27% 738 Bps

Adjusted EBITDA* 358 139 157.6% 214 67.3%

Adjusted EBITDA Margins (%) 13.76% 7.66% 610 Bps 7.99% 577 Bps

Other Income 7 38 (81.6) 46 (84.8)%

Depreciation 76 72 5.6% 73 4.1%

Finance Cost 59 88 (33.0)% 73 (19.2)%

Share of profit/ loss of associate - - NA (1) NA

PBT 227 17 NA 67 NA

Tax 63 61 3.3% 4 NA

Profit After Tax 164 (44) NA 63 NA

PAT Margins (%) 6.31% - NA 2.35% 396 Bps

Other Comprehensive Income 1 - NA 31 (96.8)%

Total Comprehensive Income 165 (44) NA 94 75.5%

Diluted EPS (INR) 1.28 (0.49) NA 0.60 113.3%

9

COUNTRY OVERVIEW

9

10 CFS India

• R&D Centre at Tarapur that has developed many new Diphenol-downstream products• Shelf Life Solutions Development, Testing and Applications Lab at Mumbai that works

on testing food formulations and blends for the food, pet food and animal nutritionindustries

• Provides technical expertise and support for shelf life solutions and aroma ingredientsto the various laboratories of CFS located globally

Total Employee Strength

350+

Manufacturing Capacity / Year

(PC) Increased from

6,000 MT to

10,000 MT


(Anti-oxidant Ingredients)

5,000 MT

4,227 3,376

4,050

5,481

-

2,000

4,000

6,000

FY16 FY17 FY18 FY19

Operational Revenue (INR Mn)

1,079

1,715 1,436

-

1,000

2,000

Q1-FY19 Q4-FY19 Q1-FY20

Quarterly Operational Revenue (INR Mn)

MahadKhopoliTarapur

Mumbai

R&D/ Food LabsMarketing officesBlending FacilityOutsourced Manufacturing Facilities

Owned Plant

11 Update on Dahej Project

• Financial Closing achieved• Basic Process & Mechanical Equipment Engineering• Long lead equipment (process & utility) as well as major equipments – Orders received except

Boiler• Civil / Structural Engineering for major non-process buildings, compound hall, Warehouse• Civil Contractors / Engineering Head / Third Party Inspection Agency / Construction Management

Company appointed• Office staff / Production head / Instrumentation head / Security Agency appointed• Water & Electricity connections in place & HAZOP study done• Detailed process Engineering - Electricals• Engineering of Piping, Instrumentation & Controls• Civil work of internal roads & area grading• Construction of Plant Building, Cooling Towers, storage tanks, admin building, pipe racks in

progress• Piping work in progress• Pre-construction activity of Solvent Area, Tank Farms, Substations, etc.

Work / Activities completed

• 95% of the project is completed and the remaining 5% is expected to be completed by Q2-FY20• Water trials to begin in Q2-FY20

Work in progress

Time line

Commissioning by the end of

Q2-FY20

12 CFS Mexico

• Acquire 65% stake in Dresen Quimica SAPI De CV, Mexico in May 2016• Primarily manufactures Blends and Additives• Key customer segments: Oil, Poultry, Diary, Rendering, Aqua, Pet food, Swine, Vitamin

Pre-mix• Total Market size is ~USD 200 Mn and CFS Mexico enjoys an overall market share of

~15% giving enough growth opportunities


12,000 MT


130+

Mexico city

Guatemala

Peru

Colombia

Cuba

Republic of Dominica

Owned Plant Marketing officesBlending Facility

505 520 568

-

200

400

600

Q1-FY19 Q4-FY19 Q1-FY20


1,210 1,642

2,172

-

1,000

2,000

3,000

FY17 FY18 FY19


13 CFS Europe

Performance Chemicals• Acquired the manufacturing facility at Ravenna, Italy in 2011, which provides captive

requirements of key raw materials i.e. Hydroquinone and Catechol• Capacity utilization achieved at 95% in FY19• Considerable growth in EBITDA Margins & Profits due to favourable prices and better yields

794 872 1,031

-

500

1,000

1,500

Q1-FY19 Q4-FY19 Q1-FY20


2,258 2,216 2,771

3,290

-

2,000

4,000

FY16 FY17 FY18 FY19


Ravenna, Italy

Shelf Life Solutions• Application lab commenced in October 2018• The Blending plant was commissioned in March 2019• Dedicated Sales team being appointed to cover the entire European market• On-boarded 5 customers


12,000 MT


50+

R&D/ Food LabsOwned Plant Marketing offices

14 CFS Brazil

Shelf Life Solutions• Formed in 2013 for Blends and the production started in 2015• Has an application lab in Indaiatuba – Brazil for customizing blends for Shelf-life Extension

Solutions.• Handles distribution of bulk antioxidants and vanillin.• Key customer segments: Oil, Poultry, Diary, Rendering, Aqua, Pet food, Swine, Vitamin Pre-mix

and Bio Diesel• Dedicated facility for animal feed and pet food additives.• Revenue will continue to grow due to launch of new products in animal nutrition and better

penetration of markets

85 108 119

-

50

100

150

Q1-FY19 Q4-FY19 Q1-FY20


222 172

252

411

-

200

400

600

FY16 FY17 FY18 FY19



6,000 MT


30+

Indaiatuba, Brazil

Argentina

Chile

R&D/ Food LabsMarketing officesBlending FacilityOutsourced Manufacturing Facilities

15 CFS Wanglong

• CFS along with CFS Europe acquired 51% stake in Ningbo Wanglong Flavours in 2017which had an operational plant since 2011

• This acquisition makes CFS the 3rd largest producer of Vanillin• Located in Grade 1 Industrial zone in the city of Yuyao Zhejiang Province, China.• It manufactures Vanillin through a dedicated manufacturing facility which started at

the end of Q2-FY18• With capacity expansion of Guaiacol in India, we are covered for 100% of primary raw

material• Establishing a distribution network across the globe

Yuyao ZhejaingProvince, China

221 310

463

-

200

400

600

Q1-FY19 Q4-FY19 Q1-FY20



4,200 MT

Capacity utilization

~55%


75+Owned Plant Marketing offices Wanglong

16 CFS North America

Shelf Life Solutions• Formed in October 2015 as a wholly owned subsidiary

Market focus• Food - Bulk oils (synthetic antioxidants), Meat & poultry (natural antioxidants)• Pet food - Rendering for pet food (natural antioxidants), Rendering for animal feed

(synthetic antioxidants)• Animal feed – Antioxidants, Mould Inhibitors, Gut Health Probiotics, Others• Has launched new products in natural anti-oxidants and animal nutrition• Built a strong diversified portfolio of 40+ products

36

128 122

-

50

100

150

Q1-FY19 Q4-FY19 Q1-FY20


12

109

178 236

-

100

200

300

FY16 FY17 FY18 FY19


Iowa, USA

Total Number of Customers

6+R&D/ Food LabsMarketing offices

Outsourced Manufacturing Facilities


10+

HISTORICAL FINANCIAL OVERVIEW

17

18 Standalone Income Statement

*As per IND-AS

Particulars (INR Mn) FY16 FY17* FY18* FY19* Q1-FY20*

Operational Income 4,227 3,376 4,050 5,481 1,436

Total Expenses 3,553 3,156 3,996 5,153 1,339

EBITDA 674 220 54 328 97

EBITDA Margin 15.94% 6.52% 1.33% 5.98% 6.75%

Depreciation 101 116 91 91 28

Finance Cost 218 232 236 203 55

Other Income 37 129 92 108 10

Exceptional Items 45 - - - -

PBT 347 1 (181) 142 24

Tax 90 9 (39) 35 8

Profit After Tax 257 (8) (142) 107 16

PAT Margin 6.03% NA NA 1.95% 1.11%

Other Comprehensive Income - (1) 1 (3) (1)

Total Comprehensive Income 257 (9) (141) 104 15

Diluted EPS (INR per share) 2.67 (0.23) (1.63) 0.88 0.13

19 Standalone Balance Sheet (IND-As)

Particulars (INR Mn) FY18 FY19 Particulars (INR Mn) FY18 FY19

EQUITY 3,314 3,474 Non-Current Assets 1,597 2,735

a) Equity Share Capital 121 121 a) Property, Plant and Equipment 683 789

b) Other Equity 3,193 3,353 b) Capital Work In Progress 120 524

c) Non-Controlling Interest - c) Investment Property 21 21

e) Other Intangible Assets 12 7

LIABILITIES 182 1,166 f) Intangible Assets under Development 78 161

Non-Current Liabilities h) Financial Assets

Financial Liabilities (i) Investments 400 657

a) Borrowings 145 1,111 (ii) Loans 190 288

b) Provisions 20 24 (iii) Other Financial Assets

c) Deferred Tax Liabilities (Net) i) Deferred tax assets (Net) 17 12

d) Other Non-Current Liabilities 17 31 j) Income Tax Assets 28 36

k) Other Non-Current assets 48 240

Current Liabilities 3,282 3,170 Current Assets 5,181 5,075

a) Financial Liabilities a) Inventories 1,148 1,093

(i) Borrowings 2,003 1,990 b) Financial Assets

(ii) Trade Payables 1,142 1,059 (i) Investments 1,081 33

(iii) Other Financial Liabilities 97 98 (ii) Trade Receivables 2,114 2,619

b) Other Current Liabilities 33 15 (iii) Cash and Cash Equivalents 18 189

c) Provisions 4 3 (iv) Other Bank balances 96 502

d) Current Tax Liabilities (Net) 3 5 (v) Loans 234 161

(vi) Other financial assets 192 221

c) Other Current Assets 298 257

d) Asset held for Sale

GRAND TOTAL - EQUITIES & LIABILITES 6,778 7,810 GRAND TOTAL – ASSETS 6,778 7,810

20 Consolidated Income Statement

*As per IND-AS

PARTICULARS (INR Mn) FY16 FY17* FY18* FY19* Q1-FY20*

Operational Income 5,042 5,469 7,228 8,922 2,601

Total Expenses 4,125 5,187 7,073 8,235 2,246

EBITDA 917 282 155 687 355

EBITDA Margin 18.19% 5.16% 2.14% 7.70% 13.65%

Depreciation 171 218 267 290 76

Finance Cost 244 269 284 367 59

Other Income 43 145 86 138 7

Exceptional Items (45) - - - -

Income from Associate - - 2 (1) -

PBT 500 (60) (308) 167 227

Tax 142 16 (68) 137 63

Profit After Tax 358 (44) (240) 30 164

PAT Margin 7.04% NA - 0.34% 6.31%

Other Comprehensive Income - (55) 124 5 1

Total Comprehensive Income 358 (99) (116) 35 165

Diluted EPS (INR per share) 3.71 (1.25) (3.01) 0.05 1.28

21 Consolidated Balance Sheet (IND-As)

PARTICULARS (INR Mn) FY18 FY19 PARTICULARS (INR Mn) FY18 FY19EQUITY 4,334 4,303 Non-Current Assets 3,510 4,143a) Equity Share Capital 121 121 a) Property, Plant and Equipment 2,066 2,086b) Other Equity 3,591 3,588 b) Capital Work In Progress 129 536c) Non-Controlling Interest 622 594 c) Investment Property 21 21

d) Goodwill 446 444LIABILITIES e) Other Intangible Assets 248 174Non-Current Liabilities 1,122 1,891 f) Intangible Assets under Development 8 54Financial Liabilities g) Investment in Associate 2 2a) Borrowings 1,102 1,849 h) Financial Assetsb) Provisions 20 23 (i) Investments 71 71c) Deferred Tax Liabilities (Net) 1 (ii) Loans 7 111d) Other Non-Current Liabilities - 18 (iii) Other Financial Assets

i) Deferred tax assets (Net) 396 412j) Income Tax Assets 68 74k) Other Non-Current assets 48 158

Current Liabilities 4,709 4,674 Current Assets 6,655 6,725a) Financial Liabilities a) Inventories 2,390 2,854

(i) Borrowings 2,468 2,470 b) Financial Assets(ii) Trade Payables 1,777 1,708 (i) Investments 1,081 33(iii) Other Financial Liabilities 306 348 (ii) Trade Receivables 2,053 2,093

b)Other Current Liabilities 85 73 (iii) Cash and Cash Equivalents 385 532c) Provisions 70 70 (iv) Other Bank balances 96 502d)Current Tax Liabilities (Net) 3 5 (v) Loans 34 31

(vi) Other financial assets 62 108c) Other Current Assets 554 572d) Asset held for Sale

GRAND TOTAL - EQUITIES & LIABILITES 10,165 10,868 GRAND TOTAL – ASSETS 10,165 10,868

22 Consolidated Financial Highlights

917

282155

687

18.19%

5.16%2.14%

7.70%

0.00%

5.00%

10.00%

15.00%

20.00%

-

300

600

900

1,200

FY16* FY17 FY18 FY19

EBITDA (INR Mn) & EBITDA Margin (%)

1,7622,126

3,712 3,709

-

1,000

2,000

3,000

4,000


Net Worth (INR Mn)

0.98

1.40

0.83 0.89

0.0

0.5

1.0

1.5


Net Debt to Equity

*As per I-GAAP

5,042 5,469

7,228

8,922

-

2,000

4,000

6,000

8,000

10,000



23 23Disclaimer

Camlin Fine Sciences LimitedNo representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in thispresentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts andmay be "forward looking statements" based on the currently held beliefs and assumptions of the management of Camlin Fine Science Limited, which are expressed in good faith and in their opinion reasonable,including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatoryenvironment.Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industryresults to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in theCompany’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties andother factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements toreflect future events or developments.This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute anoffer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision orany contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended,or pursuant to an exemption from registration there from.This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

For further details please contact our Investor Relations Representatives:VALOREM ADVISORSMr. Anuj SonpalTel: +91-22-49039500Email: [email protected]

24

Thank You

I I · 2019-10-13 · Camlin Fine Sciences Ltd. F/ 11-12, WICEL, Opp. SEEPZ, Central Road,Andheri...

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Transcript of I I · 2019-10-13 · Camlin Fine Sciences Ltd. F/ 11-12, WICEL, Opp. SEEPZ, Central Road,Andheri...